Sign Illinois Banking Warranty Deed Myself

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in part one attorney Darren Findlay will teach us how to evaluate the properties whether to bid on them or not because they could be placed on the demolition list for the city there could be an IRS lien issue also we will learn the do's and don'ts of bidding the rules of bidding paying for the property and getting the deed hi my name is Darren Findlay and I'm an attorney and I run a law firm out of Royal Oak Michigan that does quiet title work statewide throughout the state of Michigan I've been doing this for over 22 years and have a background in title related issues specifically helping investors like you who may be interested in properties that ultimately have problems with the title people ask me all the time why would I need you why would I need an attorney to assist me when I'm buying a property at a tax sale here's why when you buy a property at a tax sale at a County auction that property has a history the history relating to that property is that before you bought it at the sale there was somebody else that owned it there may have been a mortgage on it there may have been tax liens on it but it has a title history when you acquire that property at the tax sale you need to correct the chain of title and that correction of the tape chain of title is called a quiet title action my law firm and my website quiet title calm explains much of what I'm going to share with you today you can also reach me at my office by calling me at two four eight three ninety nine three three zero zero and I'm happy to explain any of the concepts that I'm talking to you about today so what do you need to do you're interested in buying a property at the county tax sale the property looks good it has all the markings of an investment that look good from your perspective what should you need what do you need to know beyond what you're seeing as an investor when you go and view the property well let's talk about some of those things first I always suggest that you physically look at the property do not rely on photographs or a simple web search look at the property look at the surrounding houses look at the neighborhood is this a neighborhood that you want to invest in if it passes that test then we'll move on to the next issue but why do I tell you not to rely on the opinion of others or simply photographs the reason I steer people away from just looking at a photograph is contextually you don't know what's going on in that neighborhood and there's a lot of fraud involved I've seen a lot of fraud over the years where people are told a property looks beautiful they live out of state they live out of the country and they rely on third parties giving them that information and then they find out that they bought something very different than they had assumed so look at the property or rely on people that you trust implicitly so that you can look at the property itself not only its physical structure but its surrounding area the next thing I want you to understand is that when you buy a property at a tax sale there are some things we want you to know about the property before you put your money down before you lay the dollars out to the county are there any IRS tax liens on that property does the property have a really problematic title history now those are very difficult things for most investors to know to be able to answer the questions to simply you can go and have a title search done or you can work with an attorney like myself who can guide you and evaluate the level of risk associated with any parcel or any property that you're interested in buying another important characteristic especially in urban and fireman's is whether that property is on the demolition list unfortunately I've had many clients over the years who has bought with thought they were buying a structure and the land that it sits on and they acquire it at the tax sale and then shortly after they buy the property the county or the city has gone through and demolished the property so if the property looks dilapidated or looks like it may be an unsafe structure I also recommend checking out to see whether that property is on the demolition list so let's assume you've done your due diligence you've assessed the quality of the property you've looked at the surrounding neighborhood you've identified whether the title to that property has any problems and you've identified whether the properties on the demolition list it's also important to note whether the property is occupied presently properties that are currently occupied can often be difficult to deal with and manage after you've acquired the property at the tax sale why do I say that well you go and you buy the property and you receive a deed from the county at the tax sale and you've got a squatter or the prior owner of the property living in that property not what you're going to have to evict that person and go through an eviction process that process although a bit of a headache can cost you some money and can take some time away from your energies in rehabilitating the property and making that property marketable or rentable for the future in addition a tenant in a property can cause all sorts of havoc when they're finally removed from the property they can cause a lot of damage to the property they can cause damage to the fixtures rip out toilets destroy the property on the way out I've seen all of these things occur so be mindful of the fact that if you're going to acquire a property and somebody is in you're going to have to dispossessed that party through a legal eviction process you can't just go knock on the door and throw their bags out to the curb and there's a process of evicting that you must do you must comply with the statutes of Michigan or you will be held liable even if that party is a squatter or illegally trespassing on the property so now we've covered all of these areas and you go to the tax sale and you're ready to buy a property at the tax sale let's now focus on that process and what happens thereafter so now you've identified that there are properties or maybe one property that you're interested in buying at the tax sale before you show up at that tax sale though there are things that have occurred first you're identifying what county the property is located in obviously you can do a simple Google search if you're not familiar with the area to identify what city corresponds to which county in the tax sale process each county within the state of Michigan handles their process a bit differently some are using outside vendors to actually conduct the sale some do a live auction in which you appear in a conference center to actually do live bidding and some use an internet-based online auction system so depending on the county in which the property is located will dictate how you go through this process first though you have to at least identify the list of potential properties that are at sale and the way you do that is depending on the county each county through the state of Michigan has on their respective websites the tax sale foreclosure or the tax sale forfeiture process as well as an online list some counties will have a few and some like Wayne County and Oakland will have many many properties that will be offered for sale some will do them on a defined date once twice a few times a year and some will do them on a rolling basis online as properties become available to bid on so you really have to check each County's website to understand which properties may be available for you to bid on again I went a few minutes ago and discuss the issues about how to evaluate properties but when you're ready to bid on a property it's important that you not put all of your energy only into potentially one property if you're an investor because often you may not be the successful bidder so we recommend do your due diligence on as many of the properties that you would consider with an understanding that some of those properties you may not be the highest bidder or on the day of the sale those property or properties may actually be withdrawn from the sale itself and may no longer be available for you to bid so now you've identified a property or properties that you're interested in and you attend a sale let's assume for purposes of this explanation that that sale is a live sale and what I mean by that it's a live auction just like you've seen on television in fact on my website I have a link of the Oakland County land sale in which I recorded a live auction to give you a taste just a taste of how it actually occurs there is actually somebody an auctioneer who stands there and a photograph of the parcel of property comes onto the screen and there are many people in attendance with paddles and they bid and the auction occurs like a live bid that you've seen on television and/or may have watched in the movies it's just like that and the auctioneer finally concludes with somebody being the highest bidder and depending on the rules of that particular auction most rules require you to perform the sale immediately or close to immediately by tendering a certified certified funds for the purchase of the property most do not accept checks or other forms of payment meaning non certified funds so you have to be prepared to deliver on the spot most of the counties have very strict rules that if you fail to perform meaning you bid and then you fail to actually tender the money you'll be barred from future sales so it's very important that if you're going to do this that you play by the rules because if you fail to actually perform it goes generally to the second bidder and then you're forever barred from participating in the process and when I say forever barred it could be a year or two depending on what the rules are of that particular County so when you bid you're the highest bidder you have to tender the funds or at least a deposit and then tender the remaining funds after a period of time then what well then the county hands you what's called a sale certificate or a purchase or sale receipt that indicates that you have deposited the money and that you are the successful bidder at the sale and ultimately a deed is issued to you in your individual name or if you've decided to purchase the property in a business name like a limited liability company or a corporation the property will be deeded into the name that you have specified again it's important that before you bid you've decided you want that property to be owned individually in a business name in a joint ownership name or otherwise come prepared because otherwise you're going to have to deed the property out afterwards which can have some implications whether it be an uncapping for property tax purposes or gift conveyance purposes so it's important to do it and have the thought about how you want to own it when you actually are the successful bidder at the tax sale so you receive this document it's called a quitclaim sale deed and you've probably learned that a quitclaim deed is different than a warranty deed a quitclaim deed is a different type of conveyance document than a warranty deed you are not receiving a warranty deed from the county you are receiving a quick claim sale deed which means that you are only receiving what the county has the county is providing no warranties relative to any of the warranties that are afforded on a warranty deed so for example if there's a defect in title you receive that defect if there's a tenant in the property you receive the tenant if there is an undischarged interest you receive that interest so if there are problems with title then you receive those problems by virtue of the quitclaim sale deed which brings into the topic of this conversation which is the quiet title process and that being what happens after you receive the property now many people when they look at a property they know that when they were quite when they've received it they know that maybe the roof needs to be fixed the porch steps need to be repaired or the house floors need to be sanded and refinished but most people don't recognize that there could be issues and they're probably our issues related to the title and these are issues that you should understand very clearly as a tax sale purchaser are to attorney fiddling will discuss with us problems with title that you receive in a tax sale understanding chain of title cloud on the title also understanding the meaning of a quieting title suit and how that works why is there a problem getting title insurance when you get the property in a tax sale and what problems can remain with title after the purchase so we've spoken about the issues relating to the sale and now you've received this quick claim sale deed and we've talked about some of the issues that may exist relating to title and I think it's important also to mention that when you're at the tack selva county gives you all sorts of documents and information about what you're receiving when you tender those funds it's important to read it you'll also see that in that document they will talk about not guaranteeing or warranting the quality of the title so let's spend a moment and talk about what title is and why when I speak of the concept of quiet title why that's important to you as an investor well title is the history of the ownership related to the property and when we speak of that we when we speak of the concept of title we are talking about the collection of all of the deeds that have ever been recorded on the chain of title all of them that have ever been recorded at the Register of Deeds the depository the place where all the deeds are recorded in addition any liens mortgages or other types of encumbrances that could be recorded will also make up this title so it is the collection of all of these documents not the last document but all of the documents read together that dictate whether your title is good and marketable or problematic and needs the assistance to clean up the chain I've used the term chain of title a few times and I think the best way to think about it is think of a chain on a bicycle one link connects to the next connects to the next and the links on a bicycle Rd so we want deed the first deed to give from person a to person B then the next deed from person B to person C and so on and so on we call that the chain of title when one of those deeds or links is broken or has a defect we say that the chain of title has a defect the chain of title has a problem and the way you repair the chain of title is through a process called a quiet title action a quiet title action is a lawsuit it is a lawsuit filed to correct the chain of title to ensure that you as the plaintiff or the party that will own the property has good marketable and insurable title title such that when we're done with the quiet title process you can sell that property you can obtain title insurance a court of law will recognize your ownership it is eight it is the undisputed ownership to the rest of the world so the idea of quiet title is the process the legal process that cleans any defects with the deeds or the mortgages that are recorded at the Register of Deeds now with a tax sale inherent in every tax sale is a title issue inherent with every property that you are interested or purchased at a tax sale there will be a title issue that exists and the title issue is a little bit different than the chain of title that I keep describing where deed a gives the deed B because remember before the county receipt of that property it had a history and the history included that somebody owned that parcel of property there was an owner and that owner could not pay their property taxes for a good two years they stopped paying for two consecutive years and then the county starts a process and the process includes sending out notices to that prior owner you have you are delinquent in your taxes pay our property taxes if you don't pay the property taxes your property will be forfeited it will be lost to the county those notices keep going out to not only the prior owner but any owner or deed holder in the chain of title as well as any lien holder mortgage company or any taxpayer of record those notices go out over and over again you may have seen them they tried to put them on brightly colored pieces f paper they post them up the house they want people to pay the property taxes because that creates a lot of money in revenue for the county but there are people who don't and the property eventually gets forfeited or lost and when we say lost meaning it goes back to the county and then the county offers those properties for sale and that's the process we've been talking about with the tax sale where you as an investor may be interested in buying a property at the tax sale so now why do we have a title issue inherent in all of the tax related parcels that end up at the auction here's why the title industry is afraid of the liability or risk with these properties over many many years as the tax sales have occurred there have been various challenges to the process people have sued the county claiming that they wrongfully took their house that their house wasn't supposed to have been foreclosed on or that they never got notice that the county instead of sending them notice sent it to somebody else and there have been successful challenges over the many many years that the tax sale process has occurred so the title industry as a whole is afraid these properties are higher risk to them so as a whole they want you to clean up the title now there could be all sorts of other title related issues the important factor is that when you buy a property at a tax sale you're going to have to address the title issue and the only actual way to clean a title to correct a title to resolve the title issue short of getting the prior owners to deed off which is very uncommon the only way to resolve it is to a legal process that I've been referring to called the quiet title action and at quiet title calm our office does these regularly filing them to resolve the title issue to allow investors to take properties that they have acquired at the sale and make them marketable make them able to be able to be sold get title insurance rent out prove to any other parties that they are the rightful owner and that is what a quiet title action is when we're done with this quiet title action there's a document called a judgment that actually gets recorded in the same place we've been talking about at the Register of Deeds it gets recorded with the deeds and the mortgages and the lien interests in the chain and it shows the world that you are the rightful owner and that you have the right to sell to owned to rent and to get title insurance now we spoke earlier of some of the things that we have to be mindful of or careful of when we're buying property or Tax auction property one of them is IRS liens and sometimes you'll look at a property and notice that there may be an IRS lien that was recorded on that property and IRS liens are really interesting because they're governed by federal law where our tax forfeiture process and the tax sale is governed by state law so the quiet title process will be necessary to resolve those issues because although the county through the forfeiture process should be cleaning or wiping out the history the liens the mortgages the prior owners there's some question whether it has the right or power to wipe out IRS liens so keep that in mind when you're looking at properties whether one of these exam three attorney fiddling will discuss the process of quieting title suit you need to know about that that will be discussed in that also if you somehow got title insurance without quieting title can you still have a title issue in the future let's talk about that so this has been an overview of both how to evaluate the quality of a parcel a quality of a property what to do at the tax cell itself how a sale occurs and you'll see some videos that we have available so you can actually watch a live auction and see how it occurs as well as what happens when you acquire the property and you receive that deed I spoke earlier about the fact that the quiet title process what we're really referring to as a lawsuit is the only way to correct legally correct the chain of title there may be other strategies available or afforded to allow you to close on the sale of a property but that just kicks the can down the road because when the problem occurs down the road whether it's a period of time or to a subsequent purchaser you're still going to be left with the defective title issue remember a title issue we say runs with the land it stays in the chain of title for the history it doesn't just vanish or go away on its own so the mere fact that you were able to close with a title agency does not necessarily mean that you've resolved the title issue and the only way to do so is by getting a quiet title lawsuit and obtaining a quiet title judgment in the favor of you or the part of your representing now at quiet title com I have a lot of this same information that I've expressed you I also walk through an extensive timeline of the process of the quiet title process each step of the way so you understand what I'm speaking of here as well as some of the frequently asked questions but again I'm very available so you can both visit my website and ask questions or call me and I will respond to anyone that contacts me to assist them through the quiet title process 2ww quiet title calm and quiet title spelled qu IET title TI tle calm or two for eight three nine nine three three zero zero thank you great so they